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Chattanooga is the Place for Business

2019 // Business & Technology

Chattanooga Is A Welcoming City for Business

Supported by an expansion in manufacturing and logistics, a business-friendly government, private and public support for startups, the Electric Power Board’s (EPB) fiber optic network, and a growing tourism industry, Chattanooga is attracting new business.

In 2018, Smart Asset, a personal finance company, named Chattanooga the city with the lowest startup cost. In 2017, Fortune called Chattanooga, “One of America’s Most Startup-Friendly Cities.” Similarly, CNBC recognized Chattanooga’s “fast-emerging tech sector with a strong startup ecosystem.” 24/7 Wall Street, a financial news site, ranked the Chattanooga metro among the top cities for job growth. In 2018, the U.S. Chamber of Commerce highlighted Chattanooga as a “Startup Destination.”

In the past year, employment has grown in Tennessee at an annual rate of 1.9%, and the jobless rate has dropped to 3.5%. The Chattanooga area has been at the forefront of this growth. In the spring of 2018, Chattanooga metro’s job growth rate was twice as fast as the rest of the country, at 4.2%. At the same time, the city of Chattanooga’s unemployment rate dropped to 3%, an 18-year low. Nearby Cleveland also dropped to a mere 3%, and Hamilton County’s jobless rate was an astounding 2.8%.

Advanced manufacturing, especially automotive manufacturing, has created a significant amount of job growth in the region. When Volkswagen established their North American plant in Chattanooga in 2011, their production facility initially created over 2,000 new jobs and drew global automotive suppliers to the area, generating even more jobs and growth.

In 2016, Volkswagen increased their investment in Chattanooga by ramping up production on their new seven-passenger Atlas. Additional auto suppliers, like Yanfeng Automotive Interiors, RemSourceUSA, Plastic Omnium, and Chattanooga Seating Systems, responded to this growth by expanding nearby. Yanfeng opened a new manufacturing facility in 2017, a $55 million investment that created 325 new jobs. Plastic Omnium expanded their manufacturing facility, and Chattanooga Seating Systems doubled their workforce, investing $5.4 million to expand their operations.

Now employing nearly 3,500 people at their Chattanooga plant, Volkswagen is planning a $340 million investment to build a new five-passenger SUV, Atlas Cross Sport, and just recently announced they’re adding a third shift and potentially hiring 1,000 more workers. They’ve also publicized an all-new remake of the Passat, the first full remake of the sedan since 2011.

Other global manufacturing firms have selected the Chattanooga region as their North American manufacturing base. In 2016, Wacker Chemie, a global manufacturer of chemical products, opened a $2.5 billion polysilicon production site in Charleston, Tennessee, located just north of Cleveland, and they are currently working on a $150 million plant expansion. Nokian Tyres, a Finnish tire maker, is currently building a $360 million plant and planning to create 400 jobs in Dayton, Tennessee.

Longstanding, homegrown manufacturing companies are also expanding operations to meet increased demand. Among those, Miller Industries, a leading manufacturer of towing equipment, just completed an expansion of their operations in Ooltewah and added 175 jobs. M&M Industries, a manufacturer of plastic pails and containers, is currently undergoing a $42.7 million expansion, creating more than 110 jobs.

In Cleveland, Mars Wrigley Confectionery is expanding, with a promised investment of $142 million and more than 70 new jobs.

Dalton-based carpet and floor manufacturers are continuing to grow. Mohawk Industries is currently expanding its vinyl flooring plant in Dalton with a $100 million investment. Shaw Industries Group is undergoing a $42 million investment in its carpet plant in Decatur, Tennessee, adding 75 new jobs. In 2018, Engineered Floors purchased competitor Beaulieu Group.

Given Chattanooga’s strategic location close to water, rail, and interstate systems, the Scenic City has long been a transportation hub. Chattanooga is home to some of the top logistics providers, including Kenco Group, U.S. Xpress, Covenant Transport, and Coyote (now a part of UPS). Amazon opened two 1 million-square-foot distribution facilities in 2011, one in Bradley County and one in Enterprise South Industrial Park. In 2017, FedEx expanded their footprint in Chattanooga by opening a second and larger distribution center near Enterprise South Industrial Park. Dynamo, a logistics accelerator that opened in 2016 to help establish tech logistics companies, has put Chattanooga on the map as an up-and-coming center for logistics technology. FreightWaves, a transportation and logistics data and content provider that launched in early 2018, has already announced the creation of 260 jobs and an investment of $3.9 million in a new downtown headquarters. Grupo Sese, a logistics company that serves Volkswagen Chattanooga, has recently expanded their office and operations in Ooltewah, while Austin-based Arrive Logistics just opened an office in Chattanooga.

Tourism in Hamilton County has continued to grow each year, contributing to Chattanooga’s economic growth. With 15.6 million visitors spending $1.1 billion each year, hotel development and management companies are continuing to build. Two boutique hotels opened in 2018, and eight more upscale hotels are planned or under renovation for the coming years.

Empowered by an unprecedented level of support for startups, Hamilton County is growing new businesses at the fastest pace among the state’s biggest counties. A total of 720 new businesses were created in the third quarter of 2018, 13.4% more than the third quarter of 2017.

Supporting these startups is Chattanooga’s innovation district, a concentrated 140-acre mix of startup businesses, business incubators, and accelerators, located in the center of downtown. Chattanooga is the first mid-size city to establish an innovation district. The Enterprise Center, anchoring the district, works to attract and develop new businesses. On the NorthShore, the INCubator, run by the Chattanooga Area Chamber of Commerce, is the third largest business incubator in the U.S. and the largest in the state. Recent numbers show a 93% success rate for INCubator graduates.

CO.LAB, a nonprofit accelerator, offers resources and support for small businesses and high-growth potential startups. Among their programs, CO.STARTERS and CO.LAB Accelerator provide aspiring entrepreneurs with the tools needed to turn ideas into sustainable, thriving businesses. CO.LAB’s GIGTANK 365 attracts entrepreneurs from around the world hoping to earn funding to develop new technology-based ideas in Chattanooga.

A number of public and private equity groups support Chattanooga’s entrepreneurial ecosystem. Among those are Chattanooga Renaissance Fund, Spartan Ventures, Tenth Street Capital, The Jump Fund, SwiftWing Ventures, Blank Slate Ventures, Four Bridges Capital Advisors, Dynamo, BrightBridge, and River Associates Investments.

Lastly, Chattanooga’s entrepreneurial ecosystem has been strengthened by EPB’s fiber optic network, capable of delivering high-speed internet to homes and businesses. First established in 2010, the 1,000 megabits per second internet speed launched Chattanooga into the international spotlight. In 2015, EPB launched 10-gig service (10,000 megabits per second) called NextNet – the fastest internet service in the world.

ASSOCIATED GENERAL CONTRACTORS OF EAST TENNESSEE

Founded in 1920, the Associated General Contractors of East Tennessee (AGC) serves as a trade association for members including general contractors, construction managers, specialty contractors, service providers, and supplier companies that support and participate in the regional commercial construction industry. By providing its members with a multitude of personal and professional development opportunities, the AGC ensures efficient operations and maintains current information on the latest trends, codes, and standards for the construction industry.

BETTER BUSINESS BUREAU

The Better Business Bureau (BBB) serves Southeast Tennessee and Northwest Georgia with a comprehensive set of best practices for how businesses should treat the public in a fair and honest manner. BBB accredited businesses must meet certain standards to qualify for accredited status and to remain accredited. Through the support of accredited businesses, the BBB works for a trustworthy marketplace by maintaining standards for truthful advertising and by investigating and exposing fraud.

BRIGHTBRIDGE INC.

Focusing on companies in Tennessee and Georgia, BrightBridge specializes in nontraditional business financing. BrightBridge works with the U.S. Small Business Administration to provide financing opportunities for existing and startup businesses. BrightBridge is also certified as a Community Development Financial Institution and has other specialized sources of financing available.

CHATTANOOGA AREA CHAMBER OF COMMERCE

The Chattanooga Area Chamber of Commerce champions member businesses and promotes regional economic growth. Leading initiatives are the Chamber-managed INCubator program and support for existing industry and small businesses. The Chamber also works to support workforce development and the recruitment of new business investments to the area. The Chattanooga Chamber supports more than 2,000 member organizations throughout the Chattanooga area, providing networking opportunities, advocating for business-friendly public policy, and engaging in countless other efforts to support business and economic development in the region.

CHATTANOOGA BAR ASSOCIATION

The Chattanooga Bar Association (CBA) works for the betterment of the legal profession by stimulating respect, esteem, and fellowship in the legal community. In addition, the CBA takes an active interest in governmental affairs. In the year of its Centennial Celebration, the CBA Board adopted a program focusing on three major issues: service to the community, service to the profession, and service to the client. In correlation with the American Bar Association and the Tennessee Bar Association, the Chattanooga Bar Association actively supports the legal community.

CHATTANOOGA CONVENTION AND VISITORS BUREAU

The Chattanooga Convention and Visitors Bureau (CVB) promotes Hamilton County and the region as a year-round destination for leisure travel, meetings, conventions, and sporting events. If you would like to host a group in Chattanooga, the CVB will help you through every step of the planning process for free. It’s easy to see why Chattanooga was named one of the “52 Places to Go” by TheNew York Times, “Top 10 Best in the U.S.” by Lonely Planet, and “Best Town Ever” twice by Outside magazine.

CHATTANOOGA-HAMILTON COUNTY MEDICAL SOCIETY

Dedicated to serving the interests of physicians and the well-being of their patients, the Chattanooga-Hamilton County Medical Society has worked for 135 years as the voice of the medical community, monitoring legislation and other changes affecting medical professions. The society serves as a collective advocate for area members and promotes the general health of residents. Since 2004, the Medical Society and Medical Foundation have coordinated more than $178 million in donated health care services for low-income workers in the community through Project Access.

CHATTANOOGA-HAMILTON COUNTY NAACP BRANCH

Formed in 1909 by a multiracial group of progressive thinkers, the National Association for the Advancement of Colored People (NAACP) is a nonprofit organization established with the objective of ensuring the political, educational, social, and economic equality of minority groups. The mission of the NAACP is to eliminate racial prejudice and remove all barriers of racial discrimination through democratic processes.

CHATTANOOGA-HAMILTON COUNTY REGIONAL PLANNING AGENCY

The Regional Planning Agency (RPA) provides land use planning support for the City of Chattanooga, Hamilton County, and other municipalities within the county. RPA conducts transportation planning for Hamilton County and a portion of North Georgia through a federally funded organization called the Transportation Planning Organization. RPA develops and maintains a variety of planning and policy tools and provides zoning and subdivision reviews for its member jurisdictions and the Chattanooga-Hamilton County Regional Planning Commission.

CHATTANOOGA REGIONAL MANUFACTURERS ASSOCIATION

The Chattanooga Regional Manufacturers Association (CRMA) works to enable cooperation, competitiveness, and profitable growth for all Chattanooga regional manufacturers to create an enriched economic future for all.

CHATECH (CHATTANOOGA TECHNOLOGY COUNCIL)

This nonprofit membership organization serves technology-related and tech-enabled companies. Members range from single-proprietor startups to enterprise companies and all-sized businesses in between. ChaTech connects the tech community through educational and networking events focused on tech, business, and innovation. Professional education programs include the Scenic City Summit developers’ conference. College scholarships for IT majors and a summer code camp for middle schoolers promote interest in tech careers. ChaTech presents the Early Innovator Award each year to highlight the importance of innovation and entrepreneurship. Councils such as ChaTech Women, the Information Security Forum, the Executive Forum, and the Corporate Innovators reach other professionals as well.

CHATTANOOGA WOMEN’S LEADERSHIP INSTITUTE

For 23 years, Chattanooga Women’s Leadership Institute (CWLI) has been increasing the leadership capabilities and influence of women in Chattanooga. CWLI is a nonprofit, nonpartisan, 501(c)(3) membership organization striving to equip women with high-quality leadership skills while addressing issues unique to females. They are 600 members strong and growing – offering a variety of educational programs, events, and leadership development opportunities spanning all career fields and levels of experience.

CLEVELAND/BRADLEY CHAMBER OF COMMERCE

The Cleveland/Bradley Chamber of Commerce is dedicated to the business development of its members and the economic growth of and the highest quality of life for the Ocoee Region of Tennessee. Programs include Young Professionals Association of Cleveland, Allied Arts Council, Leadership Cleveland, Youth Leadership Program, and more.

THE COMPANY LAB (CO.LAB)

The Company Lab (CO.LAB) is a nonprofit that supports entrepreneurial growth in Southeast Tennessee. The organization works to help launch and sustain new businesses, increase the viability of startups, connect aspiring entrepreneurs with mentors and experts, and strengthen the regional entrepreneurial ecosystem.

DIVERSITY & INCLUSION

Each year, the Chamber solidifies its commitment to an equitable, inclusive, and thriving Chattanooga economy. With an intentional approach to diversity and inclusion, the Chamber works to increase the representation and accelerated growth of diverse businesses within the community at large. The Chamber supports employers with a commitment to supplier diversity and increasing a diverse talent pipeline. It also promotes inclusive workplaces through outreach, training, programs and networking events, marketing, and strategic partnerships.

THE ENTERPRISE CENTER

Backed by the City of Chattanooga, The Enterprise Center is dedicated to establishing Chattanooga as a hub for innovation and improving people’s lives by leveraging the city’s digital technology to create, demonstrate, test, and apply solutions for the 21st century.

EXECUTIVE WOMEN INTERNATIONAL OF CHATTANOOGA

Since 1938, Executive Women International (EWI) has engaged executives through networking connections, career development, company promotion, and community involvement. More than 1,600 companies and 2,100 representatives are members of EWI today in nearly 57 chapters in the U.S. and Canada. EWI membership offers member representatives a platform to promote their company, further their professional development, and give back to their community.

GERMAN AMERICAN CHAMBER OF COMMERCE SOUTH TENNESSEE CHAPTER

Founded in 1978, this organization is a private nonprofit representing German trade interests in the region. Its mission is twofold: to promote the economic and business interests of entities that work to develop and/or preserve commercial ties between the Federal Republic of Germany and the Southern U.S.; and to improve German-American business conditions by organizing and supporting discussions, and providing tailored services to such entities in order to support their foreign business activities. The GACC is composed of 130 German chambers of commerce and government offices in 90 countries. It has successfully built an extensive network of more than 700 members across the Southern U.S. while assisting in the growth and cooperation of companies doing business on a global scale. The Tennessee Chapter opened in Chattanooga in 2013.

GREATER CHATTANOOGA REALTORS®

Founded in 1912, Greater Chattanooga REALTORS® is “The Voice of Real Estate in Greater Chattanooga.” The Association is a regional organization with nearly 2,000 members and is one of more than 1,400 local boards and associations of realtors nationwide that comprise the National Association of REALTORS®. Greater Chattanooga REALTORS® serves Hamilton and Sequatchie counties in Southeast Tennessee and Catoosa, Dade, and Walker counties in Northwest Georgia.

HOME BUILDERS ASSOCIATION OF GREATER CHATTANOOGA

A nonprofit trade association, the Home Builders Association has a membership composed of professional builders, developers, and others engaged in home building, remodeling, and light commercial construction. Also included are representatives of financial institutions, realtors, suppliers of building materials, and specialized tradespersons. The association promotes responsible building and development standards, monitors legislation, represents its membership in the halls of government, engages in the educational process, and provides networking opportunities for members.

INCUBATOR AT THE HAMILTON COUNTY BUSINESS DEVELOPMENT CENTER

A program of the Chattanooga Area Chamber of Commerce and located in the Hamilton County Business Development Center on the NorthShore, the INCubator is the largest business incubator in Tennessee and the third largest in the United States. The INCubator helps startups achieve success through a three-year, staged development program including shared administrative services, subsidized rent, training opportunities, use of a state-of-the-art Technology Conference Center, free on-site counseling from the Small Business Administration, and more. The INCubator has graduated nearly 600 small businesses into the community.

JUNIOR LEAGUE OF CHATTANOOGA

Junior League of Chattanooga (JLC) is an organization of women committed to promoting voluntarism, developing the potential of women, and improving the community through the effective action and leadership of trained volunteers. JLC celebrated its centennial in 2017.

(above) Mitch Patel, Vision Hospitality Group

Miller Welborn, SmartBank, photo by Angela Foster

KIWANIS CLUB OF CHATTANOOGA

Since its founding in 1918, the Kiwanis Club of Chattanooga has been active in the service and financial support of many charitable organizations in the community. Each year the Kiwanis Club sponsors the Great Kiwanis Duck Race, which drops 5,500 rubber ducks from the Walnut Street Bridge and raises over $10,000. The mission of Kiwanis International is “to serve the children of the world, one child and one community at a time.” Fulfilling this motto, the Chattanooga Kiwanis Club has made building and revitalizing playgrounds at schools and in the community its signature project. Several other Kiwanis Clubs are active in the Chattanooga area, including East Brainerd Kiwanis and Hixson Kiwanis. The Kiwanis Club of Chattanooga meets for lunch every Tuesday at noon at The Mountain City Club.

LEADERSHIP CHATTANOOGA

Established by the Chattanooga Chamber Foundation in 1984, Leadership Chattanooga is the premier program for the development of future local leaders. The 10-month program introduces promising early and mid-career professionals to community issues and services while developing their leadership skills in preparation for prominent roles in business, cultural, and political affairs. To date, more than 1,200 individuals have completed the challenging, motivational program, which includes experiential learning opportunities and community service team projects.

LIONS CLUBS OF CHATTANOOGA

More than 80 years ago, the Chattanooga Downtown Lions Club was formed as a service organization. Today, 14 Lions Clubs are active in the Chattanooga area, providing charitable activities often related, but not limited to, sight preservation and eye disorders. Through the Kid Sight Outreach Program, over 500,000 preschool children in Tennessee have been screened. The organization provides financial support for Tennessee School for the Blind, Tennessee School for the Deaf, Leader Dogs, Learning Ally, and Hamilton County Lions Sight Services. Lions Club International is the world’s largest service organization with 1.4 million members in over 200 countries and celebrated 100 years of service in 2017.

MECHANICAL CONTRACTORS ASSOCIATION OF CHATTANOOGA

The Mechanical Contractors Association of Chattanooga promotes education, professional development, and quality among its membership, which includes pipe fitting, plumbing, sheet metal, heating and cooling contractors, and service companies. The mission of the organization is to provide the finest workmanship and expertise available for major industrial projects, as well as for light commercial and residential needs. Members are dedicated to continuing excellence in their fields while sharing best practices and networking with
one another.

RIVER CITY COMPANY

River City Company is the economic development engine for downtown Chattanooga. Through its work to cultivate and advocate for a vibrant and healthy downtown, River City Company stimulates the community’s economic, social, and cultural growth.

ROTARY CLUB

The Rotary Club of Chattanooga was organized in 1914 and is the oldest and largest club in the organization’s District 6780. The Chattanooga Hamilton Place Rotary was chartered in 1990 and the Breakfast Rotary Club (Hixson) in 2002. An evening club is planned for 2019. Rotary clubs meet in other communities in Southeast Tennessee, North Georgia, and around the world. Rotary clubs are friends, leaders, and problem-solvers who come together to make positive, lasting change in communities at home and abroad.

SCORE CHATTANOOGA

SCORE is a nonprofit organization staffed with 18+ volunteers who are former business executives and managers, or small business owners with a total of 700+ years of education and experience in the business world. SCORE is dedicated to mentoring Chattanooga’s entrepreneurs in the formation, growth, and success of small and nonprofit businesses. Founded in 1964, SCORE provides free counseling/mentoring services, including helping startups address operational issues or assisting with other business concerns. Services are free, confidential, and unlimited. SCORE is always interested in attracting former and existing executives and small business owners who wish to pay it forward by becoming SCORE mentors.

SIMCENTER: CENTER OF EXCELLENCE IN APPLIEDCOMPUTATIONAL SCIENCE AND ENGINEERING

SimCenter: Center of Excellence in Applied Computational Science and Engineering focuses on cross-disciplinary research, development, education, and training using modeling and simulation with high-performance computing to address challenging problems in energy and environmental sciences, health and biosciences, and manufacturing. Chattanooga’s leadership supports the SimCenter as a focal point for the city’s technology community through partnerships that strengthen high-technology in Chattanooga and support ongoing economic development initiatives.

SOUTHEAST TENNESSEE DEVELOPMENT DISTRICT

The Southeast Tennessee Development District (the District) is a special purpose government unit, owned and governed by local county and municipal governments throughout Southeast Tennessee and the Chattanooga MSA. The District cost-effectively provides staffing resources to local governments and delivers programs and services regionally. The work of the District is accomplished by utilizing local, state, federal, and private funds to offer programs and services for core business functions, including community and economic development, planning and local government assistance, career and workforce development, and aging and disability programs.

TECHTOWN

TechTown is a technology and entrepreneurial learning center offering year-round technology and arts education programs, field trips, multiday camps during school breaks, and workforce development for adults. It is dedicated to providing innovators of all ages access to an innovative learning environment, awareness of the many career opportunities available in technology and arts fields, and training in 21st century skills. The center is designed for learners across all skill levels and demographics, from ages 7 to 70. TechTown is a place where people discover, learn, and explore the limitless possibilities of their imaginations.

TENNESSEE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

The Tennessee Department of Economic and Community Development’s mission is to develop strategies that help make Tennessee the No. 1 location in the Southeast for high-quality jobs. The department seeks to attract new corporate investment in Tennessee and works with Tennessee companies to facilitate expansion and economic growth.

TENNESSEE SMALL BUSINESS DEVELOPMENT CENTER AT CHATTANOOGA STATE COMMUNITY COLLEGE

In cooperation with resource partners, the Tennessee Small Business Development Center (TSBDC) provides a comprehensive source of solutions to aid in the creation, management, expansion, and sustainability of businesses in Tennessee. Services include consultation, education, and referral support. The TSBDC network contributes to the growth and development of the Tennessee economy by assisting with domestic and international trade issues. The TSBDC is a Chattanooga State Community College organization sponsored by the Chattanooga Area Chamber of Commerce, the U.S. Small Business Administration (SBA), and the University of Tennessee at Chattanooga.

URBAN LEAGUE OF GREATER CHATTANOOGA

The Urban League of Greater Chattanooga is an affiliate of the National Urban League, the nation’s oldest and largest community-based movement devoted to empowering African-Americans and other underserved individuals to enter the economic and social mainstream. The Urban League structures its focus around initiatives that provide the greatest impact on the social and economic future of underserved people.

YOUNG PROFESSIONALS OF CHATTANOOGA (YPC)

A program of the Chattanooga Area Chamber of Commerce, the Young Professionals of Chattanooga creates opportunities for young professionals (21–40) to connect and grow into future leaders of Chattanooga. YPC aims to be Chattanooga’s leadership incubator: the place where young professionals come to find inspiration, impact the community, build relationships, channel energy, advocate passions, and leave better than they came.

Did You Know?

Nine Chattanooga firms were named to Inc.’s 5000 list of the country’s fastest-growing private companies. Two businesses, Trident Transport and Lync Logistics, made the top 500.